Hangzhou Xiaoshan International Airport is seeking to build a regional aviation hub as well as pursue an initial public offering (IPO), a top company executive said.

As one of the 10 busiest airports in the nation, Hangzhou Xiaoshan International Airport announced on Thursday it will kick start a two-year-old IPO plan.

"Back in 2008 we formed a taskforce to study the possibility of launching an IPO, and hired two securities companies to do the research," said Eric Wong, CEO of the Hangzhou-based airport.

However, the listing plan was thwarted by the global economic downturn, which saw all domestic airports struggle with plummeting passenger numbers and heightened operating costs.

Wong declined to further elaborate on details of the IPO plan, but hinted that both domestic and overseas listings were possible.

China has seven publicly-listed airport operators, including Beijing Capital International Airport, Meilan International Airport, which are both listed in Hong Kong Stock Exchange.

Others including Shanghai Airport Authority, Guangzhou Baiyun International Airport, Xiamen Gaoqi International Airport and Shenzhen International Airport are listed on the Shanghai Stock Exchange.

According to Wong, the airport's second terminal will begin service in May, while a second runway and a third domestic terminal will be completed in the first half of 2012. The entire expansion project cost 10.4 billion yuan.

The new terminal is part of Hangzhou Airport's phase II expansion project, which started in November 2007 with the cooperation of European company SITA, a leading provider of communications and IT solutions.

The upgraded infrastructure is expected to bring in about 25.6 million passengers, half a million tons of cargo, and 260,000 departure and arrival flights per year, said Wong.

In 2009, Hangzhou Airport handled 14.94 million passengers and 222,000 tons of cargo, up 17.9 percent and 7.8 percent year-on-year, respectively.

Ten percent of the business is from international flights.

"Wherever our customers want to go, we will fly there," he added.

The short distance to both of Shanghai's airports - both Pudong International Airport and Hongqiao International - has to date stunted passenger growth at nearby Hangzhou Airport.

As the underdog, Wong said, Hangzhou will benefit as Shanghai's economic development grows.

"International financial centers such as London and New York have enough passenger flow to require more than one airport. London has four, while New York has three. Hangzhou Airport is positioned to be one of the international airports for Shanghai," said Wong.